Update and raise deductions to adapt to a higher inflation environment. The proposal was launched this Tuesday by the Registry of Tax Advisory Economists of the General Council of Economists of Spain (REAF-CGE). Valentí Pich, president of the economists, has even spoken of a "trap" by the administrations because "the self-employed, taxpayers or managers have suffered and are suffering from the increase in inflation. All deductions should be adapted to that," he said. commented.
Pich presents it as common sense: you charge more to weather inflation, but as a result you pay more taxes and the deductions to counteract it are left behind. "What income wants is to tax the ability to pay, and that ability to pay has been altered by a sudden and significant inflation. The majority of taxpayers have not been able to keep up with the increase in inflation," he insisted. "The ability to compensate for income is lagging behind."
The expert has also asked for "clear tax incentives for savings and investment", to encourage savings among individuals after the successive reduction of contributions to pension plans that can be deducted in the declaration.
Another claim linked to inflation involves the deflation of the rate in the state section, which according to its own calculation would leave savings of between 46.22 and 1,707 euros in the current income campaign if it had been done. "Some autonomies have deflated, but in the state it has not been done. In recent years it has been when there has been more inflation and more purchasing power has been lost," said Raquel Jurado, technician at the REAF-CGE Studies Service. The idea of deflation is to compensate for jumps in brackets and higher taxation due to salary increases that originally sought to compensate for inflation.
Economists have proposed three scenarios. One with a deflation of the state section of 3.2%, with current inflation; another with a deflation of 5.4%, which is the increase in the average salary in 2023; and another with 16.1%, the accumulated inflation between 2021 and 2023. By adjusting both rates and minimums, a person with a work income of 30,000 euros would save between 46.22 euros, 78 euros and 232.56 euros in each scenario, respectively. If the income is 45,000 euros, the savings range between 86 and 404 euros. If you jump to the highest bracket, someone with an income of 350,000 euros would save between 354.45 and 1,707.73 euros.
Although savings grow as income increases, "for a smaller income, savings can be more significant. In low incomes, any savings is much more helpful," Jurado compared.
Another point that is generating controversy in this income campaign is the return of personal income tax to mutual members who contributed in the sixties and seventies. "We thought it affected few people but it is affecting many retirees," said Rubén Gimeno, technician from the REAF-CGE studies service. The advice is to wait until April 20, when the Tax Agency will have uploaded all the data of those affected in the draft and the return would be reflected. The treasury itself asked this group for a three-week margin from the start of the campaign (on April 3).
